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Needham Remains a Buy on Credo Technology (CRDO)

​Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the High Growth International Stocks to Buy Now. On February 10, Needham reiterated a Buy rating on the stock and maintained a $220 price target. On the same day, Sujeeva De Silva from Roth MKM also reiterated a Buy rating on Credo Technology Group Holding Ltd (NASDAQ:CRDO) but lowered the price target from $250 to $200.

​The renewed bullish sentiment follows the company’s preliminary fiscal Q3 2026 revenue results and updated Q4 guidance. On February 9, Credo Technology scheduled its fiscal Q3 2026 earnings for March 2, 2026, and provided preliminary results. The company expects Q3 revenue in the range of $404 million to $408 million, significantly above the Street’s expectations of $369.3 million.

​The updated guidance is also significantly ahead of the management’s previous guidance range of $335 million and $345 million. Moreover, looking ahead to Q4, management now expects mid-single-digit percentage quarter-over-quarter revenue growth and expects the performance to continue in fiscal 2027. The update suggests that Credo will post around 200% year-over-year growth in fiscal year 2026.

​Following the announcement, Needham also updated its revenue projections for the company and now forecasts $1.92 billion in revenue for fiscal year 2027 and $2.30 billion for fiscal year 2028, up from previous forecasts of $1.60 billion and $1.90 billion, respectively.

​In addition, De Silva from Roth MKM said in a research note,

​“The company’s above-consensus preliminary guidance is driven by increasing benefit from increasing unit demand and average sales price uplift from newer, longer-reach rack-to-rack AEC cabling.”

De Silva added that the lowered price target is not based on the preliminary results but reflects broader sector share moves.

​Credo Technology Group Holding Ltd (NASDAQ:CRDO) designs and provides high-speed connectivity solutions for data infrastructure, focusing on breaking bandwidth bottlenecks in Ethernet and PCIe applications.

While we acknowledge the potential of CRDO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRDO and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 175 Teslas
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